公司理財?shù)诰虐嬲n后習(xí)題答案英文word

1、1SolutionsManualCpateFinanceRossWesterfieldJaffe9theditionCHAPTER1INTRODUCTIONTOCPATEFINANCEAnswerstoConceptQuestions1.Inthecpatefmofownershiptheshareholdersaretheownersofthefirm.Theshareholderselectthedirectsofthecpatio

2、nwhointurnappointthefirm‘smanagement.Thisseparationofownershipfromcontrolinthecpatefmofganizationiswhatcausesagencyproblemstoexist.Managementmayactinitsownsomeoneelse‘sbestinterestsratherthanthoseoftheshareholders.Ifsuch

3、eventsoccurtheymaycontradictthegoalofmaximizingthesharepriceoftheequityofthefirm.22.Suchganizationsfrequentlypursuesocialpoliticalmissionssomanydifferentgoalsareconceivable.Onegoalthatisoftencitedisrevenueminimizationi.e

4、.providewhatevergoodsservicesareofferedatthelowestpossiblecosttosociety.Abetterapproachmightbetoobservethatevenanotfprofitbusinesshasequity.Thusoneansweristhattheappropriategoalistomaximizethevalueoftheequity.3.Presumabl

5、ythecurrentstockvaluereflectstherisktimingmagnitudeofallfuturecashflowsbothshttermlongterm.Ifthisiscrectthenthestatementisfalse.4.Anargumentcanbemadeeitherway.Attheoneextremewecouldarguethatinamarketeconomyallofthesethin

6、gsarepriced.Thereisthusanoptimalleveloffexampleethicalillegalbehavitheframewkofstockvaluationexplicitlyincludesthese.Attheotherextremewecouldarguethatthesearenoneconomicphenomenaarebesthledthroughthepoliticalprocess.Acla

7、ssic(highlyrelevant)thoughtquestionthatillustratesthisdebategoessomethinglikethis:―Afirmhasestimatedthatthecostofimprovingthesafetyofoneofitsproductsis$30million.Howeverthefirmbelievesthatimprovingthesafetyoftheproductwi

8、llonlysave$20millioninproductliabilityclaims.Whatshouldthefirmdo‖5.Thegoalwillbethesamebutthebestcourseofactiontowardthatgoalmaybedifferentbecauseofdifferingsocialpoliticaleconomicinstitutions.6.Thegoalofmanagementshould

9、betomaximizethesharepricefthecurrentshareholders.Ifmanagementbelievesthatitcanimprovetheprofitabilityofthefirmsothatthesharepricewillexceed$35thentheyshouldfighttheofferfromtheoutsidecompany.IfmanagementAnswerstoConcepts

10、ReviewCriticalThinkingQuestions1.True.Everyassetcanbeconvertedtocashatsomeprice.Howeverwhenwearereferringtoaliquidassettheaddedassumptionthattheassetcanbequicklyconvertedtocashatnearmarketvalueisimptant.2.Therecognitionm

11、atchingprinciplesinfinancialaccountingcallfrevenuesthecostsassociatedwithproducingthoserevenuestobe―booked‖whentherevenueprocessisessentiallycompletenotnecessarilywhenthecashiscollectedbillsarepaid.Notethatthiswayisnotne

12、cessarilycrectit‘sthewayaccountantshavechosentodoit.3.Thebottomlinenumbershowsthechangeinthecashbalanceonthebalancesheet.Assuchitisnotausefulnumberfanalyzingacompany.4.Themajdifferenceisthetreatmentofinterestexpense.Thea

13、ccountingstatementofcashflowstreatsinterestasanoperatingcashflowwhilethefinancialcashflowstreatinterestasafinancingcashflow.Thelogicoftheaccountingstatementofcashflowsisthatsinceinterestappearsontheincomestatementwhichsh

14、owstheoperationsftheperioditisanoperatingcashflow.Inrealityinterestisafinancingexpensewhichresultsfromthecompany‘schoiceofdebtequity.Wewillhavemetosayaboutthisinalaterchapter.Whencomparingthetwocashflowstatementsthefinan

15、cialstatementofcashflowsisameappropriatemeasureofthecompany‘sperfmancebecauseofitstreatmentofinterest.5.Marketvaluescanneverbenegative.Imagineashareofstocksellingf–$20.Thiswouldmeanthatifyouplacedanderf100sharesyouwouldg

16、etthestockalongwithacheckf$2000.HowmanysharesdoyouwanttobuyMegenerallybecauseofcpateindividualbankruptcylawswthfapersonacpationcannotbenegativeimplyingthatliabilitiescannotexceedassetsinmarketvalue.6.Fasuccessfulcompanyt

17、hatisrapidlyexpingfexamplecapitaloutlayswillbelargepossiblyleadingtonegativecashflowfromassets.Ingeneralwhatmattersiswhetherthemoneyisspentwiselynotwhethercashflowfromassetsispositivenegative.7.It‘sprobablynotagoodsignfa

18、nestablishedcompanytohavenegativecashflowfromoperationsbutitwouldbefairlydinaryfastartupsoitdepends.8.Fexampleifacompanyweretobecomemeefficientininventymanagementtheamountofinventyneededwoulddecline.Thesamemightbetrueift

19、hecompanybecomesbetteratcollectingitsreceivables.IngeneralanythingthatleadstoadeclineinendingNWCrelativetobeginningwouldhavethiseffect.Negativecapitalspendingwouldmeanmelonglivedassetswereliquidatedthanpurchased.59.Ifaco

20、mpanyraisesmemoneyfromsellingstockthanitpaysindividendsinaparticularperioditscashflowtostockholderswillbenegative.Ifacompanybrowsmethanitpaysininterestprincipalitscashflowtocreditswillbenegative.10.Theadjustmentsdiscusse

21、dwerepurelyaccountingchangestheyhadnocashflowmarketvalueconsequencesunlessthenewaccountinginfmationcausedstockholderstorevaluethederivatives.SolutionstoQuestionsProblemsNOTE:Allendofchapterproblemsweresolvedusingaspreads